How much interest will be collected in advance from a loan of $ 25,000 for 2 ½ years if the discount rate is 10 2 %?

Q: What is the present value of a $400 perpetuity if the interest rate is 8%? If interest rates doubled…

A: Given data; deposit amount = $400 interest rate ( r1) = 8% interest rate (r2) = 16%

Q: of loan can you get if you pay $700 each month at a yearly rate of 0.89% for 10 yea

A: The given problem can be solved using PV function in excel. PV function computes loan amount for…

Q: (Annuity interest rate) You've been offered a loan of $25,000, which you will have to repay in 5…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: You borrow $625 for 60 days at a simple interest rate of 2.9%. What is the interest on the loan? Be…

A: The Bankers’ rule is a measure of calculating simple interest where the exact number of days of the…

Q: You look to pay the loan back over 30 years paying 1% per month. You are taking out a mortgage for…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: You've been offered a loan of $20000, which you will have to repay in 5 equal annual payments of…

A: Present Value = pv = $20,000Number of Payment = n = 5Payment = p = $6000

Q: You've been offered a loan of $10000, which you will have to repay in 10 equal annual payments of…

A: We take loans to buy large ticket items like a car or a house or to fund high expenses like college…

Q: Assume we have a $14,500,000 loan with a 2.25% interest rate, with an annual payment of $750,000.…

A: A number of years are described as the period to be consumed for the repayment of loan amount with…

Q: You borrow $90,000; the annual loan payments are $12,852.25 for 30 years. What interest rate are you…

A: Interest :  It is the total amount payment on loan taken or fund borrowed by any person . it may be…

Q: You are considering taking out a loan of $15,000.00 that will be paid back ove payments of $224.20.…

A: In this problem we have to calculate unpaid monthly instalments and calculate present value of that.

Q: Calculate the number of months required to repay the loan.

A: When we borrow money from the borrower, we need to repay the periodical installments to repay the…

Q: 3. Suppose we need to borrow $150,000 at an APR of 6% to buy a new house.  a. What will be the…

A: Calculation of Monthly Payment and Interest Paid: Excel Spreadsheet:

Q: What is the yield to maturity (YTM) on a simple loan for $1,000 that requires a repayment of $3,000…

A: yield to maturity (YTM)The yield to maturity is a financial metric used to measure the annual rate…

Q: You are considering taking out a loan of $17,000.00 that will be paid back over 5 years with monthly…

A: Here,ParticularsValuesLoan amount (PV) $ 17,000.00Term of loan 5.00Number of months in a…

Q: You borrow $250,000; the annual loan payments are $35,700.70 for 30 years. What interest rate are…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: the mortgage. How much is your monthly amortization if the interest rate of your loan is 12% and…

A: In this we have to calculate monthly payments for mortgage.

Q: a. What will be the monthly payment on a 30-year, $250,000 mortgage loan, where the interest rate is…

A: Calculation of Monthly Payment and Interest Paid on the Loan:Excel Spreadsheet:

Q: what is the present value of a loan tbat calls for the payment of $500 per year for six years if the…

A: Present value of loan is the amount of loan which has been taken by the borrower from the lender.…

Q: What is the future value of an annuity due that promises $60,000 per year for 10 years if the…

A: Annuity is regular payment to be made to investor. There are two types of annuities 1. Ordinary…

Q: ou buy items costing $ 3200 and will finance the cost with a fixed installment loan. You will…

A: Simple interest is the interest charged on the loan which remain same for all the period of the…

Q: How much interest is deducted in advance from a loan of P18,000.00 for one year and 6 months if the…

A: Given Information : Amount of loan = P 18,000 Period of loan = 1 year 6 months = 1.5 years Discount…

Q: What is the present value of $7,500 per year, at a discount rate of 8.5 percent, if the first…

A: The concept of time value of money will be used and applied here. As per the concept of time value…

Q: Suppose you take out a 30 year mortgage for $ 225000 at 6% interest. The monthly payments on this…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: You borrow $205,000; the annual loan payments are $29,274.57 for 30 years. What interest rate are…

A: using TVM SOLVER, WE FIND THE RATE BY GIVING FOLLOWING INPUT:: PV=-205,000 PMT=29,274.57 FV=0 PERIOD…

Q: 1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays…

A: Accumulation rate is the increase in size of asset, position or overall buying activity of…

Q: What size loan must we take today with a 14% compound interest rate to have end-of-year payments of…

A: Interest rate = 14%YearAnnual payment1$1,4002$1,3203$1,2404$1,1605$1080

Q: Suppose you take out a 30 year mortgage for $ 250000 at 4% interest. The monthly payments on this…

A: Mortgage a is long-term loan contract which requires the borrower to pay periodic payments with…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.